Psychology for major markets Jan 28
USD remains weak
EUR/USD – Partial retrace of the few figures rally since the beginning of the week. Quite common for such a parabolic move to retrace partially but sentiment does not seem to be changing tides soon.
USD/JPY – The sharp correction is taking a breather before the all important FOMC meeting. JGB yields continue to moderate, signals the overwhelming fear of Japan fiscal chaos and snap election calm down, along with the offering of JPY
EUR/GBP – Moderately improved tone of recent UK data had EUR/GBP near the lower end of its recent range. Now looking for a fresh trigger.
AUD/USD – Break out of recent correlation with precious metal/equity to follow the broader move of USD. Could see another leg down when the rally in metal take a turn.
Equities – Market participants are avoiding placing position before the FOMC meeting. Nasdaq is still seeing more upbeat mood.